Judicial
review of Heritage Canada decision Fort Saskatchewan Historical Society
ineligible for designation as Category “B” institution under Cultural
Property Export and Import Act (CPEIA), s. 32(2)—Applicant donated
historically significant property to Society before Society acquiring
designation under s. 32(2)—S. 32(2) interpreted by Heritage Canada policy
manual such that institution must be designated before donation made with
result donor not entitled to tax benefit for “certified cultural property” gift
under Income Tax Act (ITA)—Standard of review of interpretation of law
correctness—Concept of CPEIA described in reasons of Rothstein J. in Art
Gallery of Ontario v. Canada (Cultural Property Export Review Board),
[1994] 3 F.C. 691 (T.D.)—Purpose of Act, ITA amendments, to provide for
national heritage preservation through combination of export controls,
preferential purchase rights for designated cultural institutions, income tax
incentives for cultural property donors to such institutions—It also created
limited right of expropriation when Canadian cultural property offered for
sale—When donation made to s. 32(2) designated institution, donor may apply to
Review Board for determination whether donation cultural property under CPEIA,
fair market value determination—If Board finds CPEIA criteria met, Cultural
Property Income Tax Certificate is issued—Donor receives tax break for capital
gains, tax credit or deduction—Context demanding s. 32 be read as
whole—Subsections 32(2), (3) not independent, but meant to be employed in
context of tax benefits under s. 32(1)—Principal purpose of designation to
create tax benefits—S. 32(1) refers to institution “designated”, not
“designated or to be designated”—Furthermore, wording of ITA provisions cross‑referenced
in CPEIA, s. 32(1) make it clear institution must have been designated at time
of donation—While plight of smaller institutions such as Society may have been
in Minister’s mind when policy explained upon introduction of Bill, this was
not reflected in legislation—Application denied—Cultural Property Export and
Import Act, R.S.C., 1985, c. C‑51, s. 32 (as am. by S.C. 1991, c. 49,
s. 218)—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1.